Local First Media Group is on a receiver-led, cross-border asset-sale path, with Chapter 15 serving as the U.S. adjunct to a Canadian receivership rather than as a standalone U.S. reorganization. The case followed defaults under loan and forbearance arrangements with ATB Financial, the group’s approximately $8.2 million senior secured lender, after which the Court of King’s Bench of Alberta appointed FTI Consulting Canada Inc. as receiver on February 21, 2025. The receiver then commenced the U.S. case on May 13, 2025 through Local First Media Group’s Chapter 15 petitionDkt. 1 to protect and administer the group’s U.S. radio, tower and real-estate assets in coordination with the Canadian proceeding.
The verified recognition and cash-collateral petitionDkt. 4 sought recognition of the Canadian receivership as a foreign main proceeding, application of the U.S. stay and related protections, and authority to use U.S. cash collateral while secured creditors received replacement liens for any diminution in value. That filing also asked the U.S. court to recognize a $500,000 receiver’s charge established in Canada and to authorize the receiver to make the FCC filings needed to administer transfers involving the broadcast licenses. The resulting restructuring posture is therefore a coordinated receivership and realization process: FTI controls the enterprise, existing cash collateral supports operations and administration, and Chapter 15 supplies the U.S. protections and regulatory framework needed to pursue asset dispositions.
